The Rise of Bitcoins in Bars – digital currency

A New York City bar has recently started to accept a new digital currency called Bitcoins for its customer’s tabs reports Marketwatch.com recently.

On Sunday, EVR bar and lounge in New York will start accepting Bitcoins for drinks and food. “We have to train all the waitresses,” says Charlie Shrem, a partner at the club. Shrem is also CEO of BitInstant, a company that facilitates the retail purchase of Bitcoins at over 700,000 locations throughout the U.S. and co-chairman of The Bitcoin Foundation, which aims to standardize, protect and promote Bitcoin. “It’s a nonpolitical online money backed exclusively by code and it’s only as good as its cryptography and math.”

There are currently more than 11 million Bitcoins in circulation and the peer-to-peer currency has a total value of about $1.4 billion. The currency is not dependent on or backed by the U.S. Government (or any government for that matter). Bitcoins are popular among several e-commerce companies such as Reddit and WordPress and can be used to buy clothes and cigarettes online.

The EVR bar and lounge was eager to jump on the Bitcoin bandwagon as it offered some key benefits over other forms of payment the bar’s founder tells NYUNews.com.

“There is a lower processing rate than credit cards, roughly one percent processing rate versus 2.5 to 3.5 percent for credit cards,” explained Ian Magid, operating owner of EVR and a Stern alumnus. “In terms of cash flow, Bitcoins make EVR run more efficiently, with money being deposited in our account the next day instead of taking two to five days with normal credit card processing.”

Could bars/restaurants in Massachusetts soon accept Bitcoins? Would you embrace Bitcoins at your establishment?